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The Japan Fund for Poverty Reduction's (JFPR) 2012 Annual Report is the 12th such report and covers the period 1 January-31 December 2012. It presents the JFPR's background and rationale, implementation progress, and achievements. The JFPR was established in May 2000 and provides direct grant assistance to the poorest and most vulnerable groups in developing member countries (DMCs) of the Asian Development Bank (ADB) while fostering long-term social and economic development. The grants target poverty reduction initiatives with the direct participation of nongovernment organizations, community groups, and civil society. In 2009, the Government of Japan and ADB expanded the scope of JFPR to include provision of support to DMCs through capacity development, policy and advisory, research and development, and project preparatory technical assistance.